Bitcoin-backed loans allow holders to borrow cash or stablecoins using BTC as collateral without selling their holdings. The article explains how collateral, loan-to-value (LTV) ratios, and liquidation mechanisms work in these lending arrangements.
Bitcoin-backed loans allow holders to borrow cash or stablecoins using BTC as collateral without selling their holdings. The article explains how collateral, loan-to-value (LTV) ratios, and liquidation mechanisms work in these lending arrangements.